Investor presentation September 2019 Strictly Private and - - PowerPoint PPT Presentation

Strictly Private and Confidential

Investor presentation September 2019

Disclaimer

2

This document contains certain forward-looking statements with respect to the financial condition, results

• r operation and businesses of Network International Holdings Plc. Such statements and forecasts by their

nature involve risks and uncertainty because they relate to future events and circumstances. There are a number of other factors that may cause actual results, performance or achievements, or industry results, to be materially different from those projected in the forward-looking statements. These factors include general economic and business conditions; changes in technology; timing or delay in signing, commencement, implementation and performance of programmes, or the delivery of products or services under them; structural change in the satellite industry; relationships with customers; competition; and ability to attract personnel. You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this

• announcement. We undertake no obligation to update or revise any forward-looking statements to reflect

any change in our expectations or any change in events, conditions or circumstances. These interim results are not necessarily indicative of full year results; and the presentation does not constitute an offer or an invitation for the sale or purchase of the Company’s shares in any jurisdiction.

Company and market

• verview

3

Enabling commerce in the world’s most under-penetrated payments market

Source: Company. Notes: 1. In 2018. 2. By merchant acquirer volumes in 2017. 3. By card payments volumes for credit cards in 2017. 4. Underlying EBITDA after contribution of TG Cash, an associate in which the Company holds a 50% stake.

• 5. Underlying EBITDA margin before contribution of TG Cash. 6. On a constant currency and organic growth rate basis.

Network International is the

• nly pan-regional

provider of digital payment solutions at scale, with presence across the entire payments value chain The group delivers an integrated

• mni-channel
• ffering through

market leading payment technology

Performance Reach Scale Leadership

$40bn

Acquiring Transaction Volume1

#1

MEA Merchant Solutions2

>50

Countries

$298m

2018 Revenue

>13m

Number

• f Cards1

1st

To Provide E-commerce Solutions in MEA

>220

Financial Institutions

>680m

Number of Transactions1

#1

MEA Issuer Solutions3

>65,000

Merchants

$152m

EBITDA4 2018 c.50% EBITDA Margin5

14%

Revenue Growth6 2018

4

Notes: 1. Upside potential for the number of POS per thousand inhabitants in 2017 - defined as the population-weighted average of North America and Europe divided by the MEA metric. 2. Upside potential for the cards per adult in 2017 - defined as the population-weighted average of North America and Europe divided by the MEA metric. 3. In 2017. 4. CAGR for 2017-2022E. 5. Based on number of transactions, based on the “Core MEA Dataset”. 6. CAGR for 2017-2022E – based on the “Core MEA Dataset”

Promising Macro and Demographic Trends

Source: Edgar, Dunn & Company Market Study

Strong Secular Growth Drivers

Strong Secular Growth Drivers Attractive Macro and Demographic Trends

1.5bn

Total Population in MEA3

>4x

Increase in % of Digital Payments1

>9x

Increase in # of Cards per Adult2

~20%

B2C E-commerce growth p.a.4

8%

Africa Nominal GDP Growth5

58%

Of Population <25 years3

Large and Growing Population Sustained Economic Development Attractive Demographics

5%

Middle East Nominal GDP Growth5

Growth Potential Growth Potential Most Under- Penetrated Payments Market Significant Move to Bank Outsourcing Fast Growing E-commerce Market

At the nexus of powerful fundamental trends

82%

Of Transactions Currently Processed In-house Across MEA5

5

Most under-penetrated digital payments region

Source: Edgar, Dunn & Company Market Study, based on the “Core MEA Dataset”, “Core APAC, “Core Latin America” Note: 1. Defined as the population-weighted average of North America and Europe divided by the MEA metric. 2. Transactions based on POS and ATM. 3. Based on entire

• population. 4. Relates to 2017. 5. Relates to 2017, by number of transactions.

9x 4x 30x 22x

Select countries of operations Other countries

Cards per Adult4

5.3 3.0 1.9 1.9 0.3 5.5 3.7 3.0 2.9 1.9 1.4 1.3 0.9 0.5 0.3 North America APAC Europe Latin America MEA US Norway UK Brazil UAE Saudi Arabia South Africa Jordan Nigeria Egypt

Fewest Number

• f Cards

Transactions per Adult p.a.2, 4

427 162 70 45 12 538 432 383 115 115 100 97 18 9 5 North America Europe Latin America APAC MEA Norway US UK Brazil Saudi Arabia UAE South Africa Jordan Nigeria Egypt

Number of POS / Thousand Inhabitants3, 4

35.9 20.8 11.6 10.5 0.9 35.8 35.3 30.5 22.6 21.9 9.3 7.3 3.3 0.8 0.7 North America Europe Latin America APAC MEA UK US Norway Brazil UAE Saudi Arabia South Africa Jordan Nigeria Egypt

Digital Payments Share of Transactions5

74% 51% 22% 21% 14% 95% 79% 66% 36% 22% 15% 15% 11% 9% 9% North America Europe APAC Latin America MEA Norway US UK South Africa Brazil UAE Egypt Jordan Saudi Arabia Nigeria

MEA Growth Potential1

Limited Transactions per Adult Lowest POS per Capita High Reliance on Cash Payments 6

7 Comprehensive solution Multiple revenue drivers across value chain Ability to tailor to client needs Vertical capabilities Entrenched client relationships Differentiation and barriers to entry

ATM POS mPOS Integrated Solutions E-commerce mWallet Credit Islamic Debit Loyalty Prepaid Other VAS

(Including Fraud & Analytics)

Full Suite of Agnostic Payments Solutions for Clients Powered by Partnerships with Key Global Payments Platforms Comprehensive End-to-End Offering Across the Payments Value Chain

Denotes services provided by Network International

Merchant Payment Acceptance Merchant Acquiring Acquirer Processing Scheme Issuer Issuer Processing Issuer Servicing

Positioning across entire value chain

Source: Edgar, Dunn & Company Market Study. Notes: 1. 2017.

Breadth of Product Offering Geographic Reach

Niche Offering Comprehensive End-to-End Proposition Single Country Focus Pan-MEA

Country Specific Players Broad offering but limited geographic reach Regional Players Multiple products

• ffered in a

number of geographies but without scale Global Players Pan-regional presence but selective capabilities Mobile Wallets

Uniquely Positioned in the MEA Payments Landscape #1 MEA Merchant Solutions

19% 9% 9% 6% 4% Merchant Solutions Market Share1

#1 MEA Issuer Solutions

24% 9% 8% 7% 6% Issuer Solutions Market Share1

No other independent player No other independent player >50

Countries across MEA

>50

Countries across MEA

Main country of operation

The MEA Champion with market leading scale

8

9

Source: Edgar, Dunn & Company Market Study.

Low High Medium

Limited geographic reach and product offering with no meaningful scale across the MEA region

Limited competition from independent players on both a geographic and product basis

Geographic Reach

Africa

>50 Countries

Middle East

Scale

• Mainly Nigeria
• Jordan Only

Product Proposition

Issuer Solutions Merchant Solutions

Unmatched competitive position across MEA

Notes: 1. Relates to investment spend on the Group’s Transformation Programme, from 2016 to expected completion of Transformation program in 2019.

>$100m invested in technology platform1

Investment in operational effectiveness, digitalisation and automation

Seamless integration across all payment methods and geographies

Enabling growth and further scale benefits

Pre 2017 Technology Platform Transformatio n 2017 – 2018 Customer Migrations 2019+ Network One and Network Lite

Source: Company.

Fully Integrated Pan Regional Agile Omni-Channel

Successful execution of platform migration and key customer migrations in 2018

Largely completed

Next generation, scalable and integrated technology

10

Leading enabler of digital payments in Middle East

KeyCharacteristics Operating Across theRegion Highly Attractive Payments Market Growth

1

Undisputed Scale and Leadership

2

Attractive Opportunity for Future Growth

6

KeyStatistics

1.6x

Expected Increase in Addressable Market by 20221 Integrated Go-to-MarketStrategy

4

“Network Way of Selling”

Integrated SalesApproach Across Client Types Offering End-to-EndPayment Solutions

3

Holistic

Value Chain Offering Long-term Relationships with Blue Chip Customer Base

5

15 Years

Average CustomerTenure2

6

Countries

#1

Merchant Solutions

#1

IssuerSolutions

Source: Edgar, Dunn & Company Market Study. Notes: 1. Between 2017 and 2022. 2. Average customer tenure for top 20 customers by revenue in the Middle East.

United Arab Emirates Jordan Oman Kuwait Saudi Arabia Lebanon

11

Middle East: Revenues and customers

12

Drivers

– Growth driven by continued evolution of digital payments

– Driving strong growth in TPV and number of transactions

– Additional cross-selling of value added services and products as a result of the strength of our existing customer relationships – Continuous focus on product innovation and customer satisfaction – Developing and executing on opportunities to expand market reach

Select blue chip customers

Revenues 2016-2018

$m

186 202 224

20161

Source: Company. Notes: 1. Including ten months of the financial results of EMP in 2016.

7% 11%

2017 2018

Constant Currency OrganicGrowth

ExistingClients Expanding ExistingRelationships RecentWins

Only pan-Africa digital payments player

Africa is the World’s Most Under-Penetrated PaymentsMarket

1

Unique Pan-African Footprintwith Differentiated Positioning

2 5

Loyal and Growing CustomerBase Well Positioned for Accelerated Sustainable Long-TermGrowth

6

~10 years

Average Customer Tenure2

>40

Countries Operating Across theContinent KeyCharacteristics KeyStatistics

2.1x

Expected Increase in Addressable Market by20221 Competitive Advantage from Deep Rooted Hub and Spoke Distribution Strategy

“Network Way of Selling”

Integrated Sales Approach Across Client Type

4 3

Offering End-to-End PaymentSolutions

Holistic

Value Chain Offering

Source: Company. Edgar, Dunn & Company Market Study. Notes: 1. Between 2017 and 2022. 2. Average customer tenure for top 5 banks in Africa.

Customers Serviced by NetworkInternational 13

Africa: Revenues and customers

14

Drivers

– Superior revenue growth due to continued evolution of the African payments market – Increased outsourcing of processing activities by financial institutions across the African region – Accelerated cross-sell into the established customer base – Expansion of payment solutions offered into African customers – Balanced growth across the payments value chain

Select blue chip customers

Revenues 2016-2018

$m

ExistingClients Expanding ExistingRelationships RecentWins

49 60 74

20161

Source: Company. Notes: 1. Including ten months of the financial results of EMP in 2016 and twelve months in 2017.

20% 23%

2017 2018

Constant Currency OrganicGrowth

 Cash to digital conversion  Financial inclusion  Increasing consumer spend  Population growth  E-commerce / m-commerce growth  New client wins

Disciplined Execution on Multi-Dimensional and Tangible Growth Opportunities

 Cross / up-selling into client base  New products and value added services  Bank outsourcing  SME proposition  Industry verticals

2018 Revenue Structural Market Growth and Adoption Product Expansion and Market Penetration Opportunities for Acceleration

 93% recurring1  >96% USD or pegged  Loyal customer base  Diversified geographic and product mix

Scale Efficiencies

 Operating leverage following substantial capex investment over last 2 years  Leverage power of new processing platform  Shared service model  Efficiencies / digitalisation initiatives

Core Growth Drivers Further Upside

Source: Company. Note: 1. Recurring revenues are defined as revenues which are periodic in nature such as revenues based on volume of services provided during a contract term and excludes one-time revenues.

 Deeper geographic penetration (e.g. Saudi Arabia, South Africa)  Expansion of Merchant Solutions in Africa (e.g. white label / acquirer processing)  Strategic M&A

Clearly defined strategy for sustainable high growth

15

Saudi Arabia presents attractive market

• pportunity

16

Strong Secular Growth Drivers

Strong Secular Growth Drivers Attractive Macro and Demographic Trends

Nascent digital payments market

9%

Digital payments penetration

Supportive government initiatives

~15%

• f all today’s

transactions are digital, Vision 2030 target: ~70%

Growth

• pportunity

Limited completion Growth

• pportunity

Third party processing

• No. 3rd

Party processors with on ground presence in Saudi Arabia

87%

• f all transactions

processed in- house by domestic banks

Strong macro- economic indicators

90%

• f transactions

where cash is used

Opportunity across the entire value chain

~$1bn

Identified KSA’s payments revenue pool

Number of ATMs ATMs transaction count Number of POS terminals POS terminals – transaction count Number of credit cards

17,887 2,036m 403,750 416m ~5m ~24m 12/14

Number of debit cards Saudi banks / licenced foreign banks

Attractive, diversified and resilient financial profile

 Well-invested business with multi-year Transformation Programme to be completed in 2019  Favourable tax regime with low effective tax rate  Minimal narrow working capital requirements  Conservative balance sheet Strong Cash Flow Generation Attractive Profitability  Leading underlying EBITDA margin of ~50%

• Business model benefits from economies of scale and operating leverage
• Multiple sources of revenue on each digital payment transaction

Proven Growth Track Record  Attractive revenue growth across both Middle East and Africa

• 10 year track record of resilient growth through the cycle

Balanced and High Quality Revenue Mix  Diversified business model characterised by long-term customer relationships and high recurring revenue

• 46% Merchant Solutions and 53% Issuer Solutions1
• Average client tenure of 15 years in Merchant Solutions and 17 years in Issuer Solutions2
• 93% recurring revenue1

 Emerging markets growth profile with minimal currency risk

• >96% of revenue billed is in USD or USD pegged currencies

17

Source: Company. Note: 1. Based on 2018 revenue. 2. Based on top ten clients in merchant solutions measured by TPV and top ten clients in issuer solutions measured by revenue

Source: Company. Notes: 1. Other income includes foreign exchange gain/loss on spot currency conversion, unclaimed balances taken to the consolidated income statements in line with group’s accounting policy, cash advance fees and various other miscellaneous income.

• 2. Recurring revenues are defined as revenues which are periodic in nature such as revenues based on volume of services provided during a contract term and exclude one-time revenues.

Diversified and high quality revenue base

18

Diversified Revenue Mix…

2018 Revenue by Business Line, % 2018 Revenue by Geography, %

Issuer Solutions 53% Other 1% Merchant Solutions 46% Middle East 75% Africa 25%

…with High Quality Revenue

2018 Revenue by Type, %

Minimal Currency Risk...

2018 Revenue by Currency, %

...and Limited Customer Concentration

2018 Revenue by Size of Customers, %

~32%

2

93%

Recurring Revenue US$ or Pegged Revenue from Top 10 Customers

>96%

1

Summary outlook

• Capex as % of revenue to normalise towards 8-11%, of which c.55% will relate to maintenance Capex
• For 2019, total capex equivalent to c.22% of revenue, of which 40% relates to maintenance Capex
• Total capex expected to reduce to c.11% in 2020 due to completion of Transformation program – This excludes capex spends on growth

accelerators that will provide upside to the Revenue and EBITDA guidance

• Underlying depreciation & amortisation charge of c.12% of revenue p.a.
• Affecting 2019 EBITDA of c.$32m, of which c. $16m will be IPO-related
• Affecting 2019 Net Income of c.$47m, of which c. $16m will be IPO-related
• 2020 onwards:
• Specially disclosed items affecting EBITDA (ex. non-recurring SBC relating to the offering 3 ) of c.$3m p.a.
• Specially disclosed items affecting Net Income (ex. non-recurring SBC relating to the offering 3) of c.$20m p.a. 4
• Leverage target of 1.0 – 2.0x with continued strong de-leveraging potential5
• Progressive dividend policy, targeting no less than 15% in early years post IPO
• Dividend based on underlying net income
• Expect the first dividend to be paid in H1 2020, for the 2019 financial year

Revenue growth and underlying EBITDA margin Capex and underlying D&A Specially disclosed items Capital structure and dividend policy

Constant Currency Organic Revenue Growth Rate

• Low double-digit growth in the near term, accelerating to low to mid-teen growth over medium to long term
• Number of tangible upside opportunities not included within guidance (i.e. Saudi Arabia, Outsourcing, M&A etc.)
• An example of this is the strategic partnership with Mastercard wherein Mastercard has agreed to invest $35 m through Network to

develop payments ecosystem in the region – benefits from this partnership will be over and above the guidance Underlying EBITDA Margin Excluding Share of an Associate

• Targeting stable underlying EBITDA margin in the near term with further moderate operating leverage over medium to long term1,2

Notes: 1. Underlying EBITDA margin excluding share of an associate guidance excludes EBITDA contribution of TG Cash, an associate in which the company holds a 50% stake. The EBITDA contribution from TG Cash has been $8.4m in 2016, $6.3m in 2017 and $6.3m in 2018. 2. Underlying EBITDA margin includes impact of post IPO PLC costs and post IPO LTIP costs. 3. Non-recurring share based retention programme in relation to the offering. 4. Includes c.$3m p.a. SDI affecting EBITDA (ex. non-recurring SBC relating to the offering). 5. In-line with leverage definition as per debt covenants

19

H1 19 operational overview

20

Strong financial performance

21

Revenues

$152.3m +12.4% YoY

Underlying EBITDA

$76.4m +13.9% YoY

Underlying EBITDA Margin*

47.2% +20 bps YoY

Note*: Excluding EBITDA share of an associate

Successful operational delivery

22

Continued demand from existing and new customers, including renewed contracts with Emirates NBD and Emirates Islamic Effective monetisation and cross-sell of recently launched products, including N-Genius, Falcon and N-Advisors Investing to unlock incremental growth opportunities including accelerated market entry into Saudi Arabia Transformation on track – more than 96% of customer revenues now migrated to new technology platforms Commercial agreement with Mastercard signed which will provide upside to the management guidance over the medium-term

Middle East: Strong, sustained growth

23

$81.5m

contribution

73.0%

contribution margin

$111.5m

in revenue

9.3%

increase year-on-year

Customers Serviced by Network International

Saudi Arabia UAE Jordan Lebanon Kuwait

Healthy growth across both business lines

– Strong TPV growth in direct acquiring & acquirer processing and increase in number of transactions – Focus on cross-sell of new product capabilities – demand for N-Genius, Falcon and Card Control – Renewed contracts with two of our largest customers – Emirates NBD and Emirates Islamic – and continued to win new merchant and financial institution clients – Strategy to enter the Saudi Arabian market developing rapidly, with incremental investments and upside to the management guidance

Africa: Excellent growth trajectory

24

Customers Serviced by Network International

$28.3m

contribution

69.4%

contribution margin

$40.8m

revenue

21.6%

increase year-on-year

Superior revenue growth due to the continued evolution of the African payments market

– Significant increase in number of cards hosted and TPV from acquirer processing relationships – Ongoing cross-sell of products and services to existing 160+ client relationships - growing interest in the N- Genius POS solution, roll-out ahead of plan in H2 2019 – Signed new acquirer processing relationships and prepaid hosting deals, across all the three regions – Several strategic opportunities under review to unlock further bank

• utsourcing

and financial inclusion potential

Transformation close to completion Digitisation journey to drive efficiencies Separation from Emirates NBD

Technology supports strategic priorities

25

Technology transformation in-line with strategic principles Generating operational efficiencies

More than 96% of customer revenues now migrated On track to complete all migrations before end of 2019 Robotics process automation introduced in H1 2019 Completed digital onboarding integration for merchants in the UAE Separation of shared services from ENBD to commence in H2 2019 To drive operational flexibility and position Network for long term growth

2015 2017 2014 2018 2019 2016 2020 and onward Technology Platform Transformation Customer Migrations and Product Development Continuous Improvement and Innovation

Commercial agreement signed with Mastercard

26

Agreement to drive accelerated payment penetration, usage, and acceptance across MEA Mastercard to support product co- development and provide access to their technology Network to remain scheme agnostic Joint Steering Committee agreed to provide strategic guidance and alignment Mutual sales and go- to-market approach agreed Commitment to invest $35m in joint priorities, spread

• ver five years

Pursuing growth accelerators

27 27

Inclusion in new Saudi Arabian Monetary Authority Sandbox Legal entity setup and office opened Customers already signed with robust sales pipeline Accelerate market entry into Saudi Arabia Prioritise financial inclusion in key markets Consider inorganic growth opportunities Issued the first cards on the new Meeza payment scheme in Egypt Roll-out of N-Genius in Africa to enable low cost of acceptance Opportunity to utilise platform for mobile money acceptance Primary focus will remain on our organic growth drivers To support product capability

• r market consolidation

Continue to scan the market to identify potential opportunities

H1 19 financial review

28

Strong

• rganic

revenue growth across Middle East and Africa demonstrating continued execution

• f our strategy

Underlying EBITDA margin broadly flat, after absorbing incremental public company costs – Reflects benefits of economies of scale and

• perating

leverage inherent in the business Underlying net income reflects increase in D&A charge from recent investments Statutory results impacted by specially disclosed items

Financial summary

29

Note te* : Excluding EBITDA share of an associate

Six months ended 30 June

2019 2018 Change

($m) ($m)

Total revenue

152.3 135.6 12.4%

Underlying EBITDA

76.4 67.1 13.9%

Underlying EBITDA margin*

47.2% 47.0% 0.2pp

Underlying net income

43.8 41.7 5.1%

Profit from continuing operations

15.8 35.3 (55.4)%

Underlying earnings per share ($c)

8.77 8.35 5.0%

Reported earnings per share ($c)

2.94 6.42 (54.2%)

Strong volume growth

30 19.4 21.5

H1 18 H1 19

330.8 367.4

H1 18 H1 19

+10.8% +11.1%

12.7 13.5

H1 18 H1 19

+6.3% +11.5%*

12.1*

Average number of cards hosted (m) Total processed volume (TPV) ($bn) Number of transactions (m)

Note*: Growth in number of cards hosted excluding the First Gulf Banks demigrated in Jan 2019

Merchant solutions

– TPV growth in direct acquiring in UAE and Jordan – Strength in acquirer processing relationships – Progression in SME customer base – Product cross-sell - N-Genius, Multi CCY payments

Issuer solutions

– Strong volume growth in cards and transactions – Cross-sell of existing and new capabilities – Incremental project based revenue performing well

Continued growth across all businesses

31

Business line ($m) Segment ($m) Middle East

– Strong TPV and transaction growth – Contract renewed with Emirates NBD and others – New customer signings including in Saudi Arabia

Africa

– Strong volume growth trajectory – cards and TPV – Increased cross-sell to 160+ client relationships – New customer deals in all three regions

135.6 152.3 H1 2018 H1 2019 Middle East Africa 111.5 102.0 40.8 33.6 72.4 81.7 62.1 69.1 1.1 1.5 H1 2018 H1 2019 Issuer Merchant Other 135.6 152.3

67.1 16.8 (3.6) (5.0) 1.1 76.4

Underlying EBITDA H1 18 Revenue Underlying personnel costs Underlying selling,

• perating & other

expenses TG Cash - Associate Underlying EBITDA H1 19

Stable underlying EBITDA margins

32

Underlying EBITDA bridge ($m) Underlying EBITDA increased 13.9% year-on-year

– Revenues converted to contribution efficiently due to operational leverage; expected to support future growth – Partially offset by increase in public company costs and investments made to strengthen select capabilities – Selling, operating & other expenses increased as a result of an increase in third party costs and legal expenses – Share of TG Cash EBITDA increased by 32% due to acquisition of G4S Cash Services and organic growth in the business 47.0%* 47.2%*

Note*: Underlying EBITDA margin excluding share of an associate

Solid net income progression

33

Net income bridge ($m) Underlying net income increased 5.1% year-on-year

– Underlying D&A increased to $17m due to charge on additions made in 2019 and annualisation of 2018 additions – Successfully completed repricing of acquisition financing facility at 75bps lower margin, – Net interest expense includes amortisation of debt issuance cost, which was earlier being considered as a SDI – Favourable tax regime with underlying effective tax rate of 6.7% due to higher profits from taxable jurisdiction – Increase in SDIs – one off costs incurred in relation to IPO and charge for incentive plans in place pre-listing

43.8 76.4 (17.0) (12.4) (3.1) (21.8) (6.3) 15.8

Underlying EBITDA Underlying D&A Net interest expense Taxes Underlying net income Specially disclosed items - EBITDA Specially disclosed items - net income Profit from continuing

• perations

This includes an amortisation

• f

debt issuance cost of $1.6m, restated from SDI

Investment approach in line with strategy

34

50% 16% 34%

Transformation capex Growth capex Maintenance capex

Transformation*

– Development of Network One platform WAY4 card management system – include migrations Upgrade Base 24 Switch including capacity increase Investment in proprietary gateway – first in MEA – Expected to be completed by end of FY19

Growth

– Based on disciplined allocation principles – On boarding new customers and products – N-Genius – Investments to unlock Saudi Arabia opportunity to be launched from second half

Maintenance

– Spends required to sustain current level of operations – Higher in H1 2019 due to enhancing tech infrastructure - storage capacity and software licenses to support growth – New central facility in Cairo to drive productivity gains; not expected to recur

1 2 3

Total H1 19 capex: $36.8m (24% of total revenue)

H1 19 capex breakdown

Note*: D&A charge on Transformation capex is part of SDIs affecting net income

Changes in working capital largely due to timing of various payments Higher taxes paid in H1 2019 compared to H1 2018 as part of tax payments for 2017 and 2018 were delayed until H1 2019 pending discussions with tax authorities Maintenance capex increase due to spends

• n

enhancing technology infrastructure and new central facility in Cairo Conservative Balance Sheet with leverage

• f 1.9x as at June 2019

Total debt includes amount outstanding under acquisition financing facility and working capital

• verdraft

(to meet acquiring timing cut-offs)

Underlying Free Cash Flow

35

Note*: Before settlement related balances Note**: Lower uFCF primarily due to larger negative changes in WC uFCF conversion (defined as Underlying Free Cash Flow divided by Underlying EBITDA)

76.4 65.9 26.9** 8.2 (6.3) (12.4)

uEBITDA H1 19 Changes in working capital* Taxes paid Maintenance capex uFCF H1 19 uFCF H1 18

86%

Underlying FCF bridge ($m)

40%

2019 outlook

36

Note* : $4m of SDIs affecting net income have been reclassified since the time of the IPO

Low, double-digit organic revenue growth for FY19 (on constant currency basis), in line with previous management guidance Stable underlying EBITDA margin excluding share of an associate for FY19, in line with pervious management guidance Commercial agreement signed with Mastercard to provide upside in the medium term Transformation capex to finish in H2 2019 following completion of the programme SDIs will impact 2019 EBITDA and net income* by approximately $32m and $47m respectively Investments to unlock incremental Saudi Arabia opportunity to be launched

Appendix

37

Multiple Underlying Technologies

Local and alternative payments an accelerator of digitalisation

• >12 years since launch
• Primarily single country player facing challenges to

expand beyond Kenya

• Predominantly P2P transactions
• Limited merchant take-up
• Today bank accounts in Kenya outnumber mobile

money accounts by >30%1, whereas there were more mobile money accounts during 2010-2015

QR Code Card Based Online Authentication SMS Based Local Payments Methods

Bank Transfers

Opportunity for Network International

 Digital payments adoption accelerated by local and

alternative payments

 Fragmented local and alternative payments landscape

limits scale beyond specific geographies

 Complexity of the payments ecosystem increased by

alternative payments, enhancing Network International’s proposition

 Higher barriers to entry resulting from increased multi-

geography complexity Global Wallets

Source: 1. CGAP (Consultative Group to Assist the Poor), “In Kenya, Bank Accounts Again More Popular than M-PESA – Why”, based on 2017.

Biometrics

Multiple Types of Alternative Payments Methods M-Pesa Example

38

Income Statement

39

Six months ended 30 June (Unaudited) Year ended 31 December (Audited)

2019 2018 2018

(USD’000) (USD’000) (USD’000) Revenues 152, 2,345 45 135, 5,592 92 297, 7,935 35 Personnel expenses (45,605) (35,275) (88,084) Selling, operating & other expenses (56,646) (38,256) (85,455) Depreciation and amortisation (21,436) (15,984) (34,572) Impairment losses on assets

• (17,945)

Share of profit of an associate 2,641 2,012 3,325 Profit before interest and tax 31,29 299 48,08 089 75,20 204 Net interest expense (12,405) (9,473) (20,159) Gain on disposal of investment securities

• 2,648

Profit before tax 18,89 894 38,61 616 57,69 693 Taxes (3,130) (3,300) (10,956) Profit from continuing operations 15,76 764 35,31 316 46,73 737 Discontinued operations: Loss from discontinued operations, net of taxes (1,380) (3,432) (23,317) Profit for the period 14,38 384 31,88 884 23,42 420 Attributable to: Equity holders of the Group 14,711 32,076 26,235 Non-controlling interest (327) (192) (2,815) Profit for the period 14,38 384 31,88 884 23,42 420 Earnings per share (Basic and diluted) – in USD / cents 2.942 6.415 5.247 Earnings per share – Continuing operations – in USD / cents 3.152 7.063 9.347

Balance Sheet and Cash Flow

40

Six months ended 30 June (Unaudited) Year ended 31 December (Audited)

2019 2018 2018

(USD’000) (USD’000) (USD’000) Assets Total non-current assets 534,172 505,755 516,338 Total current assets 451,472 481,955 433,129 Total assets 985,6 5,644 44 987, 7,710 10 949, 9,467 67 Liabilities Total non-current liabilities 268,068 293,898 306,314 Total current liabilities 508,657 426,968 451,457 Equity attributable to equity holders 210,461 265,436 192,911 Total shareholders’ equity 208,919 266,844 191,696 Total liabilities and shareholders’ equity 985,6 5,644 44 987, 7,710 10 949, 9,467 67

Six months ended 30 June (Unaudited) Year ended 31 December (Audited)

2019 2018 2018

(USD’000) (USD’000) (USD’000) Net cash flows from operating activities before settlement related balances 42,42 429 15,84 846 104, 4,194 94 Changes in settlement related balances 549 121,613 12,685 Net cash flows from operating activities 42,97 978 137, 7,459 59 116, 6,879 79 Net cash outflows from investing activities (42, 42,53 530) 0) (27 27,78 788) 8) (45 45,23 233) 3) Net cash outflows from financing activities (12,02 12,027) 7) (17, 17,69 698) 8) (92, 92,15 155) 5) Net increase / (decrease) in cash and cash equivalents (11,579) 91,973 (20,499) Cash reclassified as part of held for sale (2,000) (4,655) (1,977) Cash and cash equivalents at the beginning of the period (42,466) (19,990) (19,990) Cash and cash equivalents at the end of the period (56,04 56,045) 5) 67,32 328 (42, 42,46 466) 6)

Alternative performance measures

41 The Group uses these alternative performance measures to enhance the comparability of information between reporting periods, by adjusting for uncontrollable or one-offs items, to aid the user of the financial statements in understanding the activities taking place across the Group. In addition, these alternative measures are used by the Group as key measures of assessing the Group’s underlying performance

• n day-to day basis, developing budgets and measuring performance against those budgets and in determining management remuneration.

Con

• nstan

ant Currency Re Reve venue: Constant Currency Revenue is current period revenue recalculated by applying the average exchange rate of the prior period to enable comparability with the prior period revenue. Foreign currency revenue is primarily denominated in Egyptian Pound (EGP); the average rate of one EGP per USD for first half of 2018 and 2019 are 17.8 and 17.3 respectively. Con

• ntr

trib ibuti tion

• n : Contribution is defined as business segment revenue less operating costs (personnel cost and selling, operating & other

expenses) that can be directly attributed to or controlled by the segments. Contribution does not include allocation of shared costs that are managed at group level and hence shown separately under central function costs. Underlyin ying EBITDA : Underlying EBITDA is defined as earnings before interest, taxes, depreciation & amortisation, impairment losses on assets (if any), gain on sale of investment securities, share of depreciation of associate and specially disclosed items affecting Underlying EBITDA. Underlyin ying EBITDA Margin Exclu ludin ing Sh Shar are of

• f Assoc
• ciate

te : Underlying EBITDA Margin Excluding Share of Associate is defined as Underlying EBITDA before Share of Associate divided by the revenue. Underlyin ying Net Income: Underlying Net Income represents the Group’s Profit from continuing operations adjusted for impairment losses on assets, gain on disposal of investment securities and specially disclosed items. Underlyin ying Free Cash Flow : Underlying Free Cash Flow is calculated as the profit from continuing operations adjusted for depreciation & amortisation, impairment losses (if any), net interest expense, taxes, gain on disposal of investment securities, share of depreciation of an associate, specially disclosed items affecting Underlying EBITDA, changes in working capital before settlement related balances, taxes paid and maintenance capital expenditure. Underlyin ying Effe fecti tive Tax Rate te : The Group’s Underlying Effective Tax Rate is defined as the tax expense (excluding taxes for legacy matters) as a percentage of the Group’s Underlying Net Income before Tax. Underlyin ying Earnin ings per shar are : The Group’s underlying EPS is defined as the underlying net income (as explained above) divided by the number of ordinary shares as at 30 June 2019 (i.e. 500,000,000).